Why to use Big Data?• Analyze Social Media Feeds, web traffic, IT system logs or any type of digital shadows being created in record volumes every day.• discover repeatable business patterns.• analytical use, and enabling new products.• gain competitive advantage.• More accurate Decision Making: “If you could run that forecast taking into account 300 factors rather than 6, could you predict demand better?”
“In management, business value is an informal term that includes all forms of value that determine the health and well- being of the firm in the long-run” -wikipedia
Business Value• Business value expands concept of value of the firm beyond economic value• NOT directly measured in monetary terms.• Ex: employee value, customer value, supplier value, partner value, etc…
An example…• Let’s take “customer value” as an example.• Customer is money, an income to the company.• A happy customer is everyone’s goal
Example continued…• Imagine that we are about to start user registration functionality on a website• After conducting a thorough setof user tests:1. half of all users who attemptto register can’t successfullycomplete the process.2. Those who do register find theprocess very frustrating.
Example continued…• We need to fix this issue, right?• We start asking questions, such as:- If we removed the registration process entirely from the site, what would the effects be? Win? Lose?- How does an improved registration process help the business?- Fixing the registration process to eliminate any frustration would be important, right?• With a little research on the feature’s impact, we can start to quantify the true value of the functionality
How to identify business value?• Will it increase revenue?• Will it decrease expenses?• Will it bring in new customers?• Will it bring in more money from existing customers?• Will it increase shareholder/taxpayer value?•…depending on how the organization uses that registration information.
Why Business Value is important?• To clearly communicate why investing resources in the improvements will benefit the organization.• Increases our chances of getting approval to do the interesting, challenging projects.
Make a decision!• You have tracked 300 factors (signals) that you collected through a “variety” of sources, in a different “velocity”, which comes in a huge “volume”. Big Data• You have a business value that needs improvement and enhancement, an action! Business Value• How easy would it be to analyze it?
An example• Recall our Registration example in Business Value section.• If we have linked this registration with Google Analytics, we’ll have enough information after a while to tackle down user exact behavior.• We’ll identify where the issue is, how often is it.• Hence, we’ll make a firm and accurate Decision!
Other examples• Facebook uses Big Data to analyze Big Data. Through its “Maybe you like, maybe you know, and such”• Twitter, through “People like you”. It understood your interests and made a decision on who you may want to connect with.
Last words• There are many applications out there to be used.• You cannot make use of one application to cover all your needs.• A cloud SaaS are an option, a cheaper one sometimes.• Everyone needs to make use of Big Data, even garage start ups.• Its not size that matters. While its interesting for the technical discussion to focus on size, the focus should be on business value first.